Tablets are doing very well. We are very optimistic. We have Honeycomb, the Xoom is our first Honeycomb device, and there are more products coming. We enabled advertisers to target tablets.

Certainly, smartphones still account for the bulk of Android activations. Honeycomb still kinda seems to be an unfinished OS, but Google is surely working on new iterations of Android for tablets, so things should look better in the future.